Glossary / Policy structure / Causes of Loss

Causes of Loss

Also known as: causes of loss form · causes of loss - special form · CP 10 30

Policy structure DICEE: Insuring Agreement

The part of a commercial property policy that defines which perils are covered, offered in basic, broad, and special forms.

The causes of loss form is the section of a commercial property policy that spells out which perils are covered and which are excluded. Standard property programs offer three levels: the basic form covers a short list of named perils such as fire and windstorm; the broad form adds a few more like falling objects and water damage; and the special form is the widest, covering all direct physical loss except stated exclusions. The form you select controls how much you have to prove at claim time and where your coverage actually stops. Founders reviewing a property quote should confirm which causes of loss form applies, because it matters as much as the limit or deductible.

Where you'll see it

PolicyQuote

Why it matters for your business

  • The causes of loss form, not the limit, determines which events are actually covered.
  • Basic and broad forms only cover listed perils, so anything not named is excluded.
  • The special form is broadest and shifts the burden of proof to the insurer.
  • Checking your form at quote stage prevents surprise denials after a loss.

People also ask

What is a causes of loss form?

A causes of loss form is the section of a commercial property policy that defines which perils are covered. Standard programs offer three: basic (a short named-perils list), broad (a longer named-perils list), and special (all direct physical loss except stated exclusions). The form you choose sets the breadth of your coverage.

What is the difference between basic, broad, and special form?

The basic form covers a limited list of named perils; the broad form adds several more named perils; and the special form is open-perils, covering any cause of loss unless it is specifically excluded. Special form is the broadest and the most common choice for businesses that want the widest property protection.

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Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.